Sovereign Gold Bond Scheme (SGB) - Personal Banking

• Sovereign Gold Bonds Scheme (SGB) application form
• Current Procedural Guidelines for servicing the bonds

Features:

• To be issued by Reserve Bank India on behalf of the Government of India.
• The Bonds will be restricted for sale to resident Indian entities including individuals (in his capacity as individual, or on behalf of minor child, or jointly with any other individual), HUFs, Trusts, Universities and Charitable Institutions.
• Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required.
• The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.
• The tenor of the Bond will be for a period of 8 years with exit option in 5th, 6th and 7th year, to be exercised on the interest payment dates.
• Minimum permissible investment will be 1 gram of gold.
• The maximum limit of subscribed shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time. A self-declaration to this effect will be obtained. The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchase from the Secondary Market.
• The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
• Rs.50/- per gram discount than the nominal value to those investors applying online and the payment against the application is made through digital mode.
• In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.
• Payment for the Bonds will be through cash payment (up to a maximum of Rs. 20,000/-) or demand draft or cheque or electronic banking.
• Nominations are available. In case the investment is on behalf of minor nomination facility is not available
• The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.
• The Gold Bonds will be issued as Government of India Stocks under Government Security Act, 2006. The investors will be issued a Holding Certificate for the same. The Bonds are eligible for conversion into Demat form.
• The redemption price will be in Indian Rupees based on simple average of closing price of gold of 999 purity of previous 3 working days published by IBJA.
• All the branches of the State Bank of India are authorised to accept the subscription.
• Bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time. The lien on the bond shall be marked in the depository by the authorised banks.
• Note : The loan against SGB Certificate is available.
• Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.

Sovereign Gold Bond (SGB) Scheme Calendar for premature redemption during April 2025 – September 2025

Sovereign Gold Bond (SGB) Scheme Calendar of issuance during October 2023 to March 2024